Eurozone's private sector growth accelerated as estimated in December, supported by strong performance by the manufacturing sector, final data released by Markit Economics revealed Monday.
The seasonally adjusted composite output index, which measures performance of manufacturing and service sectors, rose to a three-month high of 52.1 in December from 51.7 in November. The outcome matched the flash estimates. Readings above 50 indicate growth in activity, while those below 50 suggest contraction.
The recovery was led by strong performance by the manufacturing sector, where production growth accelerated to the highest level since May 2011 on the back of a further growth in new business.
Meanwhile, the purchasing managers' index (PMI) for the service sector dropped modestly to 51 in December from 51.2 in November. The December score was in line with the preliminary estimates. The slowdown reflected the ongoing weakness of some domestic markets.
Employment in the currency bloc remained unchanged in December, ending a 23-month sequence of cuts to payroll numbers. Input prices rose for the seventh month running in December. Output prices increased modestly.
Among the member states, Ireland and Germany stayed atop the PMI output growth league table, while Spain was the biggest mover over the month with its PMI output index surging to a near six-and-a-half year record.
"The PMI surveys indicate that the eurozone recovery gained further traction at the end of last year," Chris Williamson, Chief Economist at Markit, said.
"However, while the region as a whole looks set for a strengthening recovery in 2014, growth is uneven, with France in particular having possibly slid back into recession late last year."
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